This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 96 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 96 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the corporation tax payable for the year? A) £6, 370. B) £5, 000. C) £7, 750. D) £4, 500. Show Answer Correct Answer: A) £6, 370. 2. The Finance Minister Nirmala Sitharaman has launched which app? A) Pay Commission Mobile App. B) National Budget App. C) Union Budget Mobile App. D) Budget App. Show Answer Correct Answer: C) Union Budget Mobile App. 3. What method of accounting will generally be used when one company purchases between 20% to 50% of the outstanding stock of another company? A) Only the fair value method may be used. B) Only the equity method may be used. C) Either the fair value method or the equity method may be used, depending upon the relationship between the companies. D) Neither the fair value method nor the equity method may be used, regardless of the level of ownership. Show Answer Correct Answer: C) Either the fair value method or the equity method may be used, depending upon the relationship between the companies. 4. Accounting involves which of the following activities? A) Recording transactions and summarizing financial data. B) Conducting market research and advertising. C) Managing human resources and personnel. D) Manufacturing products and providing services. Show Answer Correct Answer: A) Recording transactions and summarizing financial data. 5. The Capital of the Company is called ..... A) Debenture Capital. B) Preference Capital. C) Share Capital. D) Others. Show Answer Correct Answer: C) Share Capital. 6. If the accountant failed to make an adjusting entry at the end of the period to record depreciation for the period, the omission will cause A) An overstatement of revenues. B) An understatement of assets. C) An overstatement of liabilities. D) An overstatement of expenses. E) An overstatement of assets. Show Answer Correct Answer: E) An overstatement of assets. 7. Who is father of accounting in india A) K.s. aiyer. B) T.N. charming. C) Suresh Prabhu. D) None of above. Show Answer Correct Answer: A) K.s. aiyer. 8. Wages and Salaries given in Trial Balance will Appear in A) Profit and Loss account. B) Balance Sheet. C) Trading Account. D) All. Show Answer Correct Answer: C) Trading Account. 9. ..... is not a subsidiary book A) Purchase book. B) Sales book. C) Ledger. D) Cash Book. Show Answer Correct Answer: C) Ledger. 10. When the lessor receives payment, he credits ..... account A) Royalty. B) Hire purchase. C) Shortworkings. D) Profit and loss. Show Answer Correct Answer: A) Royalty. 11. To credit an expense account means to decrease it. A) True. B) False. Show Answer Correct Answer: A) True. 12. Which of the following is NOT a component of net sales? A) Sales returns and allowances. B) Sales discounts. C) Cost of good sold. D) Credit card discounts. Show Answer Correct Answer: C) Cost of good sold. 13. Objective of non trading concern is profit A) True. B) False. Show Answer Correct Answer: B) False. 14. Spending or a decrease in cash A) Asset. B) WT$. C) Use. D) Source. Show Answer Correct Answer: C) Use. 15. Identify the type of expenditure. Repainting extension to warehouse three days after A) Capital. B) Revenue. Show Answer Correct Answer: B) Revenue. 16. The total amount of goods purchased by the firm for use or sale: A) Assets. B) Sales. C) Purchases. D) None of above. Show Answer Correct Answer: C) Purchases. 17. Identify the type of expenditure. Purchase of a motor van A) Capital. B) Revenue. Show Answer Correct Answer: A) Capital. 18. Entries to revenues accounts such as Service Revenues are usually A) Debits. B) Credits. Show Answer Correct Answer: B) Credits. 19. Positive accounting theory is..... A) Prescriptive. B) Descriptive. C) Normative. D) Nothing is true. Show Answer Correct Answer: B) Descriptive. 20. Generally, When considering the differences between the accounting treatment and the income tax treatment of a particular item the accounting treatment is based on A) Cash flow. B) The income tax legislation. C) Cash flow adjusted for depreciation charges. D) Accrual accounting and is subject to the requirement of accounting stanadrads. Show Answer Correct Answer: D) Accrual accounting and is subject to the requirement of accounting stanadrads. ← PreviousNext →Related QuizzesAccounting QuizzesFinancial Accounting Quiz 1Financial Accounting Quiz 2Financial Accounting Quiz 3Financial Accounting Quiz 4Financial Accounting Quiz 5Financial Accounting Quiz 6Financial Accounting Quiz 7Financial Accounting Quiz 8Financial Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books